Series 7 Exam Question 49: Answer and Explanation

Question: 49

Which TWO of the following are TRUE regarding margin accounts?

I. Minimum maintenance on a long account is 25% of the current market value

II. Minimum maintenance on a short account is 25% of the current market value

III. Minimum maintenance on a long account is 30% of the current market value

IV. Minimum maintenance on a short account is 30% of the current market value

• A. I and III
• B. I and IV
• C. II and III
• D. II and IV

Correct Answer: B

Explanation:

B. Minimum maintenance on a long account is 25% of the current market value (CMV), and minimum maintenance on a short account is 30% of the CMV).